Yahoo Finance 10 Best Cities Where You Can Buy a House for Under the National Average
These days, buying a home is very costly. Since the onset of the pandemic four years ago, demand for homes has skyrocketed. Dwindling supply and record-setting mortgage interest rates have sent the price of homes soaring.
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According to the Federal Reserve Bank of St. Louis, the median sales price of houses sold in the U.S. as of Q1 2024 is a staggering $420,800. That’s up from $329,000 as of Q1 2020. Buying a home may be out of reach with home prices like these.
However, there are still 10 cities where it’s possible to buy a house under the national average and achieve the age-old “American dream.”
Wealthy people know the best money secrets. Learn how to copy them.
Top 10 Cities To Buy A Home For Less
Forbes Advisor analyzed 100 metro areas with a population of at least 100,000 to identify the top 10 most affordable cities for homebuyers. They looked at these factors to gauge affordability:
Median salary
Median home listing price in 2023
Median annual real estate taxes
Average state income tax
Monthly utilities
Annual food cost
Here are the results:
1. Kansas City, Missouri
Median salary: $37,861
Median home listing price in 2023: $453,363
Median annual real estate taxes: $1,663
Average state income tax: 4.68%
Monthly utilities: $271
Annual food cost: $7,682
2. Buffalo, New York
Median salary: $41,036
Median home listing price in 2023: $277,697
Median annual real estate taxes: $1,601
Average state income tax: 6%
Monthly utilities: $194
Annual food cost: $8,966
3. Montgomery, Alabama
Median salary: $39,505
Median home listing price in 2023: $299,224
Median annual real estate taxes: $512
Average state income tax: 3.67%
Monthly utilities: $238
Annual food cost: $7,616
4. Milwaukee, Wisconsin
Median salary: $41,166
Median home listing price in 2023: $239,900
Median annual real estate taxes: $3,122
Average state income tax: 5.78%
Monthly utilities: $202
Annual food cost: $7,682
5. Rochester, New York
Median salary: $41,646
Median home listing price in 2023: $274,338
Median annual real estate taxes: $2,625
Average state income tax: 6%
Monthly utilities: $197
Annual food cost: $8,966
6. Baltimore, Maryland
Median salary: $50,108
Median home listing price in 2023: $365,875
Median annual real estate taxes: $2,799
Average state income tax: 4.41%
Monthly utilities: $241
Annual food cost: $8,434
7. Memphis, Tennessee
Median salary: $38,949
Median home listing price in 2023: $327,275
Median annual real estate taxes: $1,658
Average state income tax: 1%
Monthly utilities: $158
Annual food cost: $7,616
8. Toledo, Ohio
Median salary: $37,220
Median home listing price in 2023: $239,900
Median annual real estate taxes: $1,541
Average state income tax: 3.84%
Monthly utilities: $201
Annual food cost: $7,682
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9. Cleveland, Ohio
Median salary: $47,268
Median home listing price in 2023: $248,480
Median annual real estate taxes: $1,508
Average state income tax: 3.84%
Monthly utilities: $187
Annual food cost: $7,682
10. Detroit, Michigan
Median salary: $36,000
Median home listing price in 2023: $270,000
Median real estate taxes: $1,268
Average state income tax: 4.25%
Monthly utilities: $290
Annual food cost: $8,277
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This article originally appeared on GOBankingRates.com: 10 Best Cities Where You Can Buy a House for Under the National Average
